Why Use FOSS Why Use FOSS in GenSan?in GenSan?By Bronx HebronaBy Bronx Hebrona

SMEs in GenSan Comprise 99 percent of the business sector SME sector is mainly built around the

multimillion tuna industry Organized SME groups Few SMEs have computerized operations Growing ICT-based SMEs Limited ICT technical support base for

SMEs

ICT in GenSan The city is a fast growing alternate ICT

hub outside Metro Manila, Cebu and Davao

BOI named GenSan among ICT-ready cities in the country

Being developed as ICT hub of Region 12 Has declared IT parks Thriving ICT ventures Organized ICT-based groups Competitive ICT schools

FOSS in GenSan There are established FOSS users and

developers but exposure is still limited ICT schools have limited programs/course

offering on FOSS No established FOSS technical support

base Only one established FOSS group so far But potentials for FOSS use and

development is high

ICT for SMEs Information and communications technologies (ICT)

can enhance the key role that SMEs play in national economic development strategies by facilitating flows of information, capital, ideas, people, and products.

A strong SME sector that is integrated into the global digital economy can lead to job creation, increased public revenue and a general rise in the standard of living.

The uses of ICT to enable SMEs to participate in the knowledge economy offers enormous opportunities to narrow social and economic inequalities and thus help achieve broader development goals. (FOSS & SMEs primer/IOSN)

Internet and e-commerce SMEs should keep on improving itself and

see how technology can be of help. They have to keep on reinventing for long term competitiveness. With the advent of global and borderless trading, government trade promotion will not always be enough, neither the solution, competitiveness is.

Most SMEs shun them due to cost considerations

There are a lot of things that an SME must consider and invest in to maximize its benefits - computers, software applications, supply chain management (SCM), enterprise resource planning (ERP), customer relationship management (CRM) tools, and so much more.

As these cost too much, most SMEs who ventured into it limit their computerization to automation of basic work tasks and have the capability to send emails over the Internet.

So why use FOSS?Free software is a matter of liberty, not price. To understand the concept, you should think of free as in free speech, not as in free beer.Free software is a matter of the users’ freedom to run, copy, distribute, study, change and improve the software.

~ Free Software Foundation

Open source applications have increasingly grown in features, capabilities and scope. FOSS programs now find relevance in practically all industries, including the business/enterprise sector where FOSS can play a key role in achieving greater efficiency and profitability. As the range of software applications continues to grow exponentially, FOSS present tremendous benefits, especially for SMEs in developing countries. (FOSS & SMEs Primer/IOSN)

FOSS can help SMEs assimilate technology faster, increase productivity and efficiency of operations, explore new markets and bridge the digital divide between SMEs and large corporations.

Because it's free (as in freedom)

Cost – Although FOSS programs can be downloaded from the internet without paying license fees, some costs are associated with FOSS. Total Cost of Ownership (TCO) is significantly lower than proprietary software such as Miscrosoft’s Windows applications. For instance, an ATCO study by Robert Frances Group and the NetProject reported that total cost of deploying FOSS in certain projects is 35-40% lower than Microsoft applications. FOSS allows SMEs to save resources which can then be channelled to other pressing needs.

Savings to SMEs from using FOSS would tend to increase as more employees are provided with FOSS. The bigger the outfit, the greater the savings. In other words, the financial incentive of migrating to FOSS increases with size.

For managers the main reason to use FOSS will be freedom. If they decide to buy proprietary (closed) software, it will be difficult to ever switch to another vendor. Next year that vendor will set the price such that they make a lot of money, but it will still be more expensive to switch to another solution. This is the lock-in effect of closed software.

The best example is when it comes to MS-Windows. What company can do without buying MS-Windows, and often also MS-Office? Microsoft knows that, thus they keep raising the price. You have no choice than to pay. Unless you use another system where possible.

Because you don't need a signature

Most companies have a system for

ordering things that cost money. Fill in forms, get signatures, wait until it's processed and hopefully the package will arrive some day. When a license needs to be signed the legal department is involved and it may take much longer.

In contrast, FOSS can be downloaded and installed in minutes. You only need to be allowed to install software on the system.

Because you can change it

If you buy closed software, there is only one place you can go to for adjusting the software to your needs. The lack of choice will very likely make it expensive, and you may not be satisfied with the result. And if it's a big company they might simply refuse.

With FOSS you have the source code. Minor changes you can make yourself. If it gets too complicated, you can hire someone or a company to do the work for you. You have a choice who you hire, you can select the best person or company for the job at a reasonable price.

Because it's better

FOSS is mostly developed in a chaotic way, it seems. It is true that this means deadlines are not important. What does matter to FOSS developers is quality. They keep working on it until it's perfect.

Reliability and Stability – FOSS systems are well known for their stability and reliability. Studies conducted on its stability revealed that proprietary software crashed more often. In fact a ZDNET study ran a 10-month reliability test between Windows NT and Red Hat Linux. The result: Windows NT crashed once every 6 weeks while the FOSS system never suffered any crash at all.

Peer review plays an important role: Everybody can try a test version of the software, look at the code and make remarks about things that don't look right. This is especially important for security. Many people do their best to find leaks, it is a challenge for them. The result is that FOSS tends to be reliable and secure. But sometimes it may take a while before it's ready.

Because there is high quality support

Continuous Innovation – As FOSS materials are made available to the public, thousands of eyes and hands make enhancements to it. Ease of, and indeed, encouraged collaboration between people means that innovation happens at a rapid pace, unlike closed proprietary software which releases updates only so often. Continuous innovation also enables the easy customization of programs at a pace not possible with closed applications.

FOSS is developed by many people. If you have a problem, often you can directly contact the person who created the specific part. Or ask your question on a mail list, you may get a solution within an hour or a patch within a day. But this can be unpredictable. If you need reliable support, you can hire a company

For a help desk this is not much different from closed software. But if you run into a real bug, they can actually fix it for you. You don't need to wait for the next version from the vendor.

Security – The availability of source codes make it easier for SMEs to discover and fix vulnerabilities even before a flaw can be exploited. FOSS runs a large part on the internet and is focused on robustness and functionality.

Flexibility and Vendor Independence – Unlike most proprietary software which come bundled with all sorts of various applications, FOSS gives SMEs more flexibility by allowing them to choose and deploy selected applications, and customizing these to suit their needs. Further, open standards give users the freedom to change between software packages platforms and vendors.

Reduced reliance on imports – Since virtually all proprietary software in developing countries is imported, SME purchases consume hard currency and costs countries their foreign reserves. FOSS has a positive feedback on the local economy since the cost for FOSS service is normally spent within the economy.

Reduced reliance on imports – Since virtually all proprietary software in developing countries is imported, SME purchases consume hard currency and costs countries their foreign reserves. FOSS has a positive feedback on the local economy since the cost for FOSS service is normally spent within the economy.

Developing local software capacity – Studies point out that there is a correlation between the growth of FOSS developer base and the innovative capacities (software) of an economy. There are low barriers to entry, and FOSS represents an opportunity for countries to develop a crucial pool of knowledge workers to enhance its global competitiveness.

Intellectual Property Rights – FOSS mitigates piracy by providing a far more affordable alternative to proprietary software. Piracy is high in developing countries where lower incomes make proprietary software inaccessible and which, in turn, encourages piracy.

Localization – Localization involves making a product linguistically and culturally appropriate to the users. Because of its open nature, FOSS inherently makes it likely that developed software will reflect regional needs, languages, cultural considerations and other particular user preferences.

Supply-Side Benefits – SMEs can avoid supplier lock-up if they use FOSS. FOSS assures users of competitive prices of applications and services as there is no single vendor to dictate price changes and availability of updates or enhancements.

FOSS for SMEs Various FOSS applications, as potentially

highly beneficial ICT tools, can be used by SMEs. These range from desktop applications and productivity suites (such as word processing and spreadsheets) to more sophisticated back-end applications to enhance network infrastructure such as firewalls, routers, dns servers, email applications and for data center infrastructure including storage and database management.

The following are some of the major areas where ICT can help enhance SME’s effectiveness and efficiency:

Accounting and finance - book keeping and cash flow management, budgeting, credit and collections, financial management and reporting, payroll systems

Business planning – project management tools, forecasting, mind mapping, word processing, spreadsheets and presentation programs.

Human resource - compensation and benefits systems, employee management, payroll, recruting and hiring

International business – databases, communication and presentation tools

Marketing and sales – advertising, editing and graphic tools, customer management system, direct mail, email and web development, market research tools, sales management

Office and Operations – Office productivity applications, procurement and inventory systems, telecommunication systems, e-commerce, messaging, web marketing, internet, networks, tech support, web developmentt, hosting, etc.